Please answer the binomial tree in tree/table format I provided my notes

Safari File Edit History Bookmarks Window Help Q 8. Wed Nov 13 3:23 PM Reminders . . . [ V canvas.sfu.ca check weight Screenshot 4.7 Fut.. 11.5 A... My Cit... C ASSIG... SFU Assign... 16.2 B... = 374 re... Slides... W Custo... 1 05 F... 2024-11...0 PM (2) BIN324C.Pr.pdf & Download @ Info X Close LR2023-11 Problem BIN-324C Screenshot 2024-11...9.00 PM Create a binomial tree for a stock, based on (with our usual notation): Length of period: in days: 18 n years: T = 0.493151 (using a 365 day year) S = Continuously compounded rate: r= 0.06 C = Screenshot Initial stock price: S(0) = 102 p = 2024-11...9.22 AM Volatility parameter: O= 0.8 S = The drift parameter m= .02 C = Number of sub-periods: n= p = In the grey area, use at least six decimal places. C = Screenshot Length of subinterval in years: h = P = 2024-11...9.54 AM Up-factor: U= S = S Down-factor: d= C = C = FV($1) per period: R(0,h) = R = p = p = Risk-neutralized up-probability: = 1 C= C = RobloxPlayerInsta ler We are given p = p = T-expiration European call and put with strike price S= K = 95 C = Complete the binomial tree for the stock and for the two options. D = S = For prices on the binomial trees, use C = at least 3 decimal places. p = Verify the put-call parity relationship for time-0 prices. Show work. p(0) = ......." NOV 5 13 cricut PDFSafari File it View History Bookmarks Window Help Q Wed Nov 13 4:51 PM ... canvas.sfu.ca C Screenshot Screenshot 2024-11...9.30 PM 2024-11...0 PM (2) 4.7 Fut.. 11.5 A .. . 15.5 BI.. Chapt. My Cit.. C ASSIG... W BUS3... SFU Assign... 16.4 BI.. *Cours... SFU = BUS316 D100 / BU... > Files > 16.4 BINO32.PrSol.V... Screenshot Screenshot 2024-11...49.31 PM 2024-11...9.00 PM Fall 2024 Account Home 16.4 BINO32.PrSol.VB.pdf Screenshot Screenshot Syllabus Download 16.4 BINO32.PrSol.VB.pdf (1.18 MB) 2024-11...9.33 PM 2024-11...9.22 AM Dashboard Part (a) Modules Length of period in years: T= 0.739726 = 270 days (using a 365 day year) Number of sub-periods: n = 3 S = 62.24 h= 0.246575 =T= 90 days C= 52.24 Assignments Length of subinterval in years: Continuously compounded rate: r= 90 0 S 38.07 Courses Initial stock price: S(0) 100 This part is identical 29.69 Volatility parameter: S S= 120.44 Screenshot 0.3 Screenshot People to Example BIN-31. 117.50 The drift parameter m= .05 16 30 10.44 2024-11...9.27 PM2024-11...9.54 AM Call's strike price: 110 00.00 S 02.50 CE 8.74 C= 4.84 Groups Announcements FV($1) per period: R(0,h) = R= 1.014905 = exp(r . h) 7.23 89.41 Up-factor: 1.175035 = exp(m . h + o. h"z) 2.25 0.00 Grades Down-factor: 0.872284 = exp(m . h - o. h1/2) 76.09 Risk-neutralized probability : 0.471082 = (R-d)/(u -d) 0.00 56.37 Calendar Pages G= 0.00 Screenshot RobloxPlayerinstal Part (b): Same tree, except with different o. 2024-11...5.02 PM ler 17 Files Length of period in years: T= 0.739726 (same as above) Number of sub-periods: 3 (same as above) 188.30 Inbox Length of subinterval in years: h = 0.246575 (same as above) C = 78.30 Discussions Continuously compounded rate: r= 0.06 (same as above) S= 52.49 Initial stock price: S(0)= 100 (same as above) IC= 44.10 Volatility parameter: O = 0.4 Changed S 23.49 S = 126.57 The drift parameter m = .05 (same as above) 23.84 16.57 Canvas Call's strike price: K - 110 (same as above) 100.00 S= 102.50 12.52 7.46 Spaces FV($1) per period: R(0,h) = R 1.014905 = exp(r . h) S 33.00 S: 85.07 Up-factor: 1.234856 = exp(m . h + o.h"/?) 3 35 0.00 Down-factor: 0.830027 = exp(m . h - o . h1/2) Screenshot (? ) Risk-neutralized probability : 0.456680 = (R-d)/(u -d) 0.00 2024-11...3.23 PM 57 19 Help K Previous Next NOV 6 13 NA EL cricut16.2 BINO31.PrSol.VB.pdf 16.3 BINO43.PrSol.VB.pdf x + Create Sign in All tools Edit Convert E-Sign Find text or tools Q H Al Assistant All tools X Copyright (c) 2017-2018 by Avi Bick Export a PDF Example BIN-43: a nine-period tree compared to a three-period binomial tree LR1807 Length of period in years T= 0.739726 = 270 days (using a 365 day year) Edit a PDF Number of sub-periods: n = 9 225.03 Length of subinterval in years: h = 0.082192 =T = 30 days, c = 115.03 Continuously compounded rate: r = 0.06 S= 05.64 Initial stock price: S(0) 100 96.18 Create a PDF e Volatility parameter: .30 S 87.91 S 189.47 The drift parameter m = 0.05 78.99 79.47 Call's strike price: K= 110 49 Combine files 71.72 173.14 FV($1) per period: R(0, h) = R = 1.004944 = exp(r - h) 63.34 33.6 Up-factor: U = 1.094302 = exp(m - h + o. h1/2) S = 156.92 S= 158.22 S = 159.52 0 Organize pages Down-factor: 0.921366 = exp(m - h - o . h1/2) 49.07 49.30 19.52 Risk-neutralized probability : 0.483286 S = 143.40 S= 144.58 S= 145.78 36.61 c = 36.20 lc= 36.32 Al Assistant 131.04 S 132.12 S 33.21 34.31 26.33 25.31 24.29 24.31 S : 19.7 20.74 S 21.7 S 122.74 Generative summary 8.32 16.97 15.36 13.28 S = 09.43 S 10.33 s 11.24 112.16 113.09 12.38 11.00 9.34 7.15 3.09 Request e-signatures 00.00 3 00.8 S 101.6 S 2.50 03.34 8.15 6 94 653 3.81 148 S= 92.14 Ss 92.90 S 13.66 S 94.44 S= 95.22 Scan & OCR 4.27 3.20 2 01 0.71 0.00 S 34.89 S= 85.59 S : 86.30 S 37.01 1.82 1 05 0 34 0.00 Protect a PDF 78.22 18.861 9.51 S 80.17 0.55 0.17 0.00 0.00 S= 72.07 S 2.66 S 3.26 Redact a PDF 0 08 0.00 0 0 6.40 S 6.95 57.50 0.00 0.00 0.00 Compress a PDF 61.18 1.6 0.00 56.37 S 6.83 Prepare a form The three-period case with the same T, S(0), r, m, o and K (as in BIN-31) 00 0 0.00 S 51.93 3 0.00 View more 0.246575 = T= 90 days S= 17.85 R(0,h) = R = 1.014905 0.00 u= 1.175035 d = 0.872284 S = 162.238 0.471082 S= 138.071 52.238 C = 29.686 S = 117.503 89.1% 1 C = 16.304 S = 120.437 ICE 100.00 S = 102.496 C = 10.437 8.740 ICE 4.844 S= 87.228 To be discussed when we cover hedging: Time-0 delta of the call, in the above binomial tree, is 0.4643 It may be regarded as an approximation of delta according to the B-S model = N(d1) = 0.4727